The entry to record the sale of 14,500 shares of $10 par value common stock at a cash price of $14 per share would include - Debit Cash for $203,000 (14,500 shares x $14 per share) - Credit Common Stock for $145,000 (14,500 shares x $10 par value per share) - Credit Additional Paid-in Capital for $58,000 ($203,000 - $145,000)
Step 1: Identify the given information:
- Number of shares sold = 14,500
- Par value per share = $10
- Cash price per share = $14
Step 2: Calculate the total cash received from the sale of shares:
Total cash received = Number of shares sold * Cash price per share
Total cash received = 14,500 * $14
Total cash received = $203,000
Step 3: Calculate the par value of the shares issued:
Par value of shares issued = Number of shares sold * Par value per share
Par value of shares issued = 14,500 * $10
Par value of shares issued = $145,000
Step 4: Calculate the excess of cash received over the par value:
Excess cash received = Total cash received - Par value of shares issued
Excess cash received = $203,000 - $145,000
Excess cash received = $58,000
Step 5: Record the entry:
Debit Cash for $203,000
Credit Common Stock for $145,000
Credit Additional Paid-in Capital for $58,000
This entry properly records the sale of 14,500 shares of $10 par value common stock at a cash price of $14 per share.
The Cash account is debited for the total cash received, the Common Stock account is credited for the par value of the shares issued, and the Additional Paid-in Capital account is credited for the excess of cash received over the par value.
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Net Present Value-Unequal Lives
Daisy’s Creamery Inc., is considering one of two investment options. Option 1 is a $30,000 investment in new blending equipment that is expected to produce equal annual cash flows of $10,000 for each of seven years. Option 2 is a $33,000 investment in a new computer system that is expected to produce equal annual cash flows of $13,000 for each of five years. The residual value of the blending equipment at the end of the fifth year is estimated to be $7,000. The computer system has no expected residual value at the end of the fifth year.
To determine which investment option is more favorable, we can calculate the net present value (NPV) for each option. The NPV helps assess profitability of an investment by considering time value of money.
To calculate the NPV, we discount the cash flows of each option to their present values using an appropriate discount rate. In this case, let's assume a discount rate of 10%.
Option 1:
Investment: $30,000
Annual Cash Flows: $10,000 for 7 years
Residual Value: $7,000 at the end of the 5th year
We can calculate the NPV for Option 1 as follows:
NPV1 = (-Initial Investment) + (Present Value of Cash Flows) + (Present Value of Residual Value)
The present value of cash flows can be calculated using the formula:
PV = CF / (1 + r)^n
Where:
PV = Present Value
CF = Cash Flow
r = Discount Rate
n = Number of years
Calculating the present value of cash flows for Option 1:
PV1 = $10,000 / (1 + 0.10)^1 + $10,000 / (1 + 0.10)^2 + ... + $10,000 / (1 + 0.10)^7
Calculating the present value of the residual value for Option 1:
PV_res1 = $7,000 / (1 + 0.10)^5
Calculating the NPV for Option 1:
NPV1 = -$30,000 + PV1 + PV_res1
Option 2:
Investment: $33,000
Annual Cash Flows: $13,000 for 5 years
We can calculate the NPV for Option 2 as follows:
NPV2 = (-Initial Investment) + (Present Value of Cash Flows)
Calculating the present value of cash flows for Option 2:
PV2 = $13,000 / (1 + 0.10)^1 + $13,000 / (1 + 0.10)^2 + ... + $13,000 / (1 + 0.10)^5
Calculating the NPV for Option 2:
NPV2 = -$33,000 + PV2
To determine which option is more favorable, calculate the NPV for Option 1 and Option 2 using the given cash flows, discount rate, and residual values. Compare the NPV results: if the NPV is positive, the investment is considered favorable; if the NPV is negative, the investment may not be favorable. Choose the option with the higher NPV, as it indicates a higher expected profitability.
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Identify each attribute as being associated with fiat money, commodity-backed money, or both. Drag each item on the left to its matching item on the right. Note that every item may not have a match, while some items may have more than one match. U.S. silver certificates are a historical example. not tied to anything with intrinsic, stable value more portable than commodity money commodity-backed money fiat money a type of money used in the United States prior to 1971 both not tied to a good for which the demand can change type of money used in most modern economies A government can expand the supply deliberately and quickly.
Identifying each attribute as being associated with fiat money or commodity-backed money or both will go in various situations as below.
Explanation:
1. U.S. silver certificates are a historical example - Commodity-backed money
2. Not tied to anything with intrinsic, stable value - Fiat money
3. More portable than commodity money - Fiat money
4. Commodity-backed money - Commodity-backed money
5. A type of money used in the United States prior to 1971 - Both
6. Not tied to a good for which the demand can change - Fiat money
7. Type of money used in most modern economies - Fiat money
8. A government can expand the supply deliberately and quickly - Fiat money
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Camina, Amos, and Julie form a partnership where each partner will have an equal share to start. Camina contributes $60,000 in cash, Amos contributes $60,000 in equipment, and Julie contributes $20,000 in cash and brings to the table expertise that the partners agree is worth $40,000, and choose to account for the value of this expertise using the goodwill method. Immediately after formation, Julie's capital account would reflect a balance of: a) $20,000 credit b) $45,000 credit c) $60,000 credit
The correct answer is c) $60,000 credit..
immediately after formation, julie's capital account would reflect a balance of $60,000 credit.
in a partnership, the partners' capital accounts represent their ownership interests in the business.
The capital account balance is affected by the contributions made by each partner. in this case, camina contributed $60,000 in cash, amos contributed $60,000 in equipment, and julie contributed $20,000 in cash along with her expertise valued at $40,000 using the goodwill method.
to calculate julie's capital account balance, we need to consider her initial cash contribution and the value of her expertise. the total value of julie's contribution is $20,000 (cash) + $40,000 (goodwill) = $60,000.
since each partner has an equal share in the partnership, and julie's total contribution matches the amount contributed by camina and amos, her capital account balance would be $60,000 credit. this means julie has an equal ownership interest in the partnership as camina and amos, reflected by the credit balance in her capital account.
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True or false: Over 70% of business employees trust their senior management and believe that their company leaders act with honesty and integrity
Over 70% of business employees trust their senior management and believe that their company leaders act with honesty and integrity---False
What are business leaders?
A business her leader is someone who motivates a group of people to achieve a common goal within an enterprise. This could be someone in a position of power, such as the vice president or CEO of a large company, or the editor-in-chief of a newspaper.
What do company executives do?Leaders ensure that the company is aligned with its vision and mission and that employees emulate the company's values. They do this by leading by example. Managers must have strategic, decision-making, and interpersonal skills.
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3. Which of the following is consistent with the basic economic postulate that incentives
matter?
Consumers buy fewer cars when the price of cars rises.
a.
b. Farmers produce less corn when corn prices decline.
C. A politician votes for a subsidy when it is in the best interest of a special interest group
within his district even if it might harm other voters.
d. All of the above.
All of the given option are consistent with the basic economic postulate that incentives matter.So, option (d) is correct answer.
What is economic incentives?Economic incentives are financial perks offered to individuals to change their patterns of consumption and output in an economy. Most often, economic incentives are used to alter people's behavior such that desired results appear naturally.
Economics as a whole is based on the straightforward tenet that shifts in incentives have predictable effects on how people behave. Incentives are influenced by both monetary and non-monetary factors.
People will be less inclined to select something if it becomes more expensive. In turn, consumers will be more inclined to select an alternative as the benefits associated with it grow. This straightforward notion, often known as the basic postulate of economics, is an effective tool because it pertains to practically everything we do. Less people will select an option as it grows more expensive.
So, above postulate is satisfied by all options given to us.
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How can being smart, kind and generous make you a better person? Click to add to
Answer:
it will help you in life
Explanation:
when your kind and generous you can get a better job and to help you make friends and also you can be smart because you can apply to be a teacher or a tutor to help others
If at the end of a period, a company has $400 in cash, $100 in accounts
receivable, and $100 in accounts payable, the post-closing trial balance will
show _____worth of debits.
A. $200
O B. $400
O C. $600
O D. $500
How does an improvement in productivity affect a business's profit margin?
A. It increases the profit margin by lowering costs.
B. It decreases the profit margin by lowering costs.
C. It decreases the profit margin by raising costs.
D. It increases the profit margin by raising costs.
Answer:
it increases the profit margin by lowering costs
Explanation:
An improvement in productivity affects a business's profit margin as it increases the profit margin by lowering costs. Thus, option A is correct.
What is the profit margin?Profitability is gauged by profit margin. Estimating the profit as a proportion of revenue is used to calculate it. Gross profit margin, operating profit margin, and net profit margin are the three different forms of profit margins. Gross profit is multiplied by net sales to determine the gross profit margin.
A company may produce more goods without increasing expenses by boosting productivity. Producing more opens up the possibility of increasing sales, which in turn might boost earnings. In addition to improving overall earnings, higher productivity can raise a company's profit margin.
The profit margin of a company is impacted by an increase in productivity since it lowers expenses and raises the profit margin. Therefore, choice A is correct.
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Amelie received an email that claimed to be from a Nigerian prince who needed help setting up
a bank account but would pay thousands of dollars if Amelie helped him. What kind of email is
this?
a) Ad
b) Spam
c) Junk
d) Support
Answer:
Explanation:
Spam
Market research has produced the following estimates of cross elasticity of demand.
Branded cola and branded iced tea +1.5
Branded cola and own label cola +0.5
a Explain what these estimates mean and their business significance for sales of branded cola when the price of branded iced tea and own label cola increase by 20%.
b Using diagrams, explain how the market is likely to be affected by:
i A substantial cut in the price of branded ice tea.
ii A substantial increase in the price of branded cola.
a) The cross elasticity of demand measures the responsiveness of the demand for one product to a change in the price of another product.
b) i) A substantial cut in the price of branded ice tea would likely result in a decrease in the demand for branded cola as consumers switch to the cheaper substitute.
ii) A substantial increase in the price of branded cola would likely result in a decrease in the demand for branded cola, as consumers switch to other substitute products.
Elasticity refers to the measure of the responsiveness of a product's demand or supply to changes in price, income, or other factors that affect market conditions. The degree of elasticity is determined by how much a change in one variable affects the other variable. If a product's demand is elastic, it means that a small change in the price of the product will have a significant impact on the demand for it.
On the other hand, if the demand is inelastic, it means that a change in price will not have a significant impact on the demand for the product. Similarly, if a product's supply is elastic, it means that a small change in price will result in a significant change in the quantity supplied, whereas if the supply is inelastic, the change in price will not have much effect on the quantity supplied.
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Coach Sieb Has a treadmill desk. Walking on the treadmill will break down her triglyceride Levels 90% faster what is the percent that it breaks down while sitting
Answer:
0%
Explanation:
Base on the scenario been described in the question, where we saw coach Seib has 90% faster breaking her triglyceride Levels while working, when sitting, she has a 0% of breaking her triglyceride Levels because no movement, there will be no breakdown in the triglyceride Levels
A random variable follows a binomial distribution with a probability of success equal to 0.59. Find:
For a sample size of n=6, find: The probability of exactly 4 success
The expected value(mean)
The expected variance
If a random variable follows a binomial distribution with a probability of success equal to 0.59 then the expected variance is approximately equal to 1.468.
Given that a random variable follows a binomial distribution with a probability of success equal to 0.59.
We need to find the following values:
For a sample size of n = 6, find: The probability of exactly 4 successes The expected value(mean)The expected variance
The probability of exactly 4 successes
The probability of exactly 4 successes can be calculated by using the following formula:
P(X = k) = nCk * p^k * (1 - p)^(n - k)
Where, P = Probability of success
n = sample size
nCk = combination of k successes in n trials
Therefore, the probability of exactly 4 successes can be calculated as
P(X = 4) = 6C4 * 0.59^4 * (1 - 0.59)^(6 - 4) = 0.2676
The probability of exactly 4 successes is 0.2676.
The expected value (mean) The expected value (mean) of a binomial distribution is given by the formula: μ = np
where, μ = mean of the binomial distribution n = sample size p = probability of success
Therefore, the expected value is: μ = 6 * 0.59 = 3.54 The expected value (mean) is 3.54.
The expected variance of a binomial distribution is given by the formula: σ^2 = np(1 - p) where σ^2 = variance of the binomial distribution = sample size p = probability of success
Therefore, the expected variance is:σ^2 = 6 * 0.59 * (1 - 0.59)≈ 1.468
The expected variance is approximately equal to 1.468.
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Determine which of the statements below describes a petty cash receipt. (Check all that apply.)A. A petty cash receipt is rarely prenumbered.B. All petty cash receipts are turned in to the company cashier at the end of each day.C. The petty cashier must present all paid receipts to the company cashier in order to replenish the fund.D. Any person wishing to withdraw funds from a petty cash fund must complete a petty cash receipt.E. A petty cash receipt is sometimes called a petty cash ticket.F. A petty cash receipt will have a signature line for the person receiving a disbursement from the fund.
Answer:
C. The petty cashier must present all paid receipts to the company cashier in order to replenish the fund.
D. Any person wishing to withdraw funds from a petty cash fund must complete a petty cash receipt.
E. A petty cash receipt is sometimes called a petty cash ticket.
F. A petty cash receipt will have a signature line for the person receiving a disbursement from the fund.
Explanation:
A petty cash receipt is a form that is used in the documentation of cash payments from the petty cash box. The petty cash receipt is also referred to as the petty cash ticket.
The petty cashier must present all paid receipts to the company cashier in order to replenish the fund and any individual who wants to withdraw funds from a petty cash fund must complete a petty cash receipt.
(a) The following was reported in the local newspaper: "There is enormous churn in the labour market, with anywhere from 300,000 to 400,000 people joining and leaving positions each month. However, with people being hired in construction different to those losing their jobs in manufacturing replaced by automation, it is possible that rising unemployment will create a fall in demand resulting in decline in economic growth". Determine and explain the types of unemployment referred to in the above statement. (3 marks) (b) Assume the economy is recovering from a recession. The Minster of Employment expects to see the official unemployment rate fall, but instead the unemployment rate increases. Which of the groups defined as "not in the labour force" could explain the increase in the official measure of the unemployment rate, and why?
a) unemployment referred are - Fictional unemployment and Structural unemployment.
b) The unemployment rate is "discouraged workers."
a) There are different types of unemployment referred to in the given statement. The following are the types of unemployment referred to in the above statement:
Fictional unemployment: There is enormous churn in the labour market, with anywhere from 300,000 to 400,000 people joining and leaving positions each month. This represents the fictional unemployment in the labour market. Frictional unemployment is the temporary employment transitions within an economy caused by people entering and leaving jobs.
Structural unemployment: With people being hired in construction different from those losing their jobs in manufacturing replaced by automation, it is possible that rising unemployment will create a fall in demand resulting in the decline in economic growth. This reflects structural unemployment.
b) The group defined as "not in the labour force" that could explain the increase in the official measure of the unemployment rate is "discouraged workers."
Discouraged workers: These people are the ones who are unemployed but have not sought employment recently. They are not counted in the official measure of the unemployment rate. Discouraged workers are defined as those who have given up looking for work because they believe that there are no job opportunities for them.
Therefore, they are not considered unemployed because they are not actively seeking work. The increase in the number of discouraged workers can result in an increase in the official measure of the unemployment rate, even during the period of recovery from the recession.
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This morning, Wilson's Meats had both a book and a bank balance of $1,500. Today, the firm received 20 checks from customers that averaged $110 each. The funds from these checks will be delayed by one day, which will cover both the processing and availability delays. Wilson's also received $4,000 of payments from customers who are billed and pay electronically. The electronic payments are available immediately. What is the firm's collection float as of the end of this day
Wilson's Meats has a collection float of $2,200 as of the end of the day. The calculation is based on the formula Collection float = total checks - delayed checks + immediate payments. The delayed checks are $2,200, while the immediate payments are $4,000. Thus, the collection float is $1,800.
The collection float is the difference between the book balance and the bank balance, and it reflects the funds that are in the process of being collected.
In this case, Wilson's Meats received 20 checks averaging $110 each, which means the total amount of the checks is 20 x $110 = $2,200. Since the funds from these checks will be delayed by one day, they are not yet available to the firm, so they should be subtracted from the book balance.
Wilson's Meats also received $4,000 of payments from customers who pay electronically, and these funds are immediately available to the firm, so they should be added to the book balance.
Therefore, the firm's bank balance is still $1,500, but its book balance is now $1,500 - $2,200 + $4,000 = $3,300.
The collection float is the difference between the bank balance and the book balance, which is $1,500 - $3,300 = -$1,800. This means that the firm's checks have not yet cleared the bank and are still in the process of being collected.
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why is it particularly important for a firm like reebok to stay informed of technological advancements and seek out the ones it could possibly use in its operations
To be able to utilize the cutting-edge technology, it is critical for businesses to be aware of technical breakthroughs in production.
Growing market share in its present businesses, according to O'Toole, is the brand's main priority. These businesses include fitness and training. Reebok is focusing more on these areas. Although O'Toole believes his company is "one of just a few really global sports brands," he anticipates future growth. "The Reebok business is still doing very well. They are currently one of the most popular brands on the market, according to Powell. And the barriers—call let's them guardrails—Adidas erected around what Reebok could and couldn't produce have been removed. Thus, Reebok is able to produce anything today. Today, Authentic Brands and its advantages dominate how Reebok's history is told.
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if a competing brand's product is priced much lower than a consumer's internal reference price, which is most likely to occur
If a competing brand's product is priced much lower than a consumer's internal reference price, the most likely scenario is that the consumer will perceive the competing brand's product as offering a good deal or value for money.
Reference pricing refers to the price point or range that consumers have in mind as a benchmark or reference when evaluating the value of a product.
It is often based on past experiences, previous purchases, or general market knowledge. When the price of a product falls significantly below the consumer's internal reference price, it creates a perceived discrepancy between the expected price and the actual price.
It's important to note that the consumer's response may vary depending on factors such as their level of brand loyalty, perceived product quality, and the overall value proposition of the competing brand's product.
However, in general, a significant price difference in favor of the competing brand is likely to capture the consumer's attention and potentially drive purchase behavior.
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Which of the following refers to business activities that change the accounting equation?
A) transactions
B) liabilities
C) purchases
D) on account
Answer:
A
Explanation:
jones corporation purchases land with a market value of $200,000 in exchange for 180,000 shares of its $1 par common stock. the journal entry to record this transaction is:
Jones Corporation exchanges 180,000 shares of its common stock with a par value of $1 for the purchase of land with a market value of $200,000. Debit Land for $20,000 in order to reflect this purchase. Credit Common Stock in the amount of $180,000 (180,000 shares * $1).
What is the name for company-issued and repurchased shares of its own stock?A stock that was formerly in circulation but has since been bought back and is now owned by the corporation that issued it is referred to as treasury stock. Treasury stock is a counter equity account since it lowers the amount of total shareholders' equity on a company's balance sheet.
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The entries that transfer the balances of all temporary accounts to retained earnings are referred to as.
Answer: closing entries
Explanation:
why adding payment options in the stands can increase a fan’s satisfaction at a sports
event?
The results of a partial least squares structural equation modeling analysis imply that aspects of the stadium, club management, and the fan-based support for the club are the most important determinants of fan satisfaction.
- BRAINLIEST answerer
Answer: The costumer would find it better and easier, which means sport event will make more profit because the fans are satisfied.
Hope this helped!
helpppp
Project A, B, and C have respective lifetimes of 12, 15, and 30 years. Using EUAW analysis, the renewed lifetime of each project is 60 years. True False
False
The statement is false. The renewed lifetime of a project cannot be determined simply by summing up the individual lifetimes of its components. Each project has its own specific lifetime, and it does not automatically extend or renew based on the lifetimes of other projects.
In EUAW (Equivalent Uniform Annual Worth) analysis, the lifetimes of different projects are considered independently to evaluate their economic worth. EUAW analysis calculates the equivalent annual worth of each project by discounting and comparing the cash flows over their respective lifetimes. It helps in comparing projects with different lifetimes and determining their economic feasibility.
Therefore, in the given scenario, Project A has a lifetime of 12 years, Project B has a lifetime of 15 years, and Project C has a lifetime of 30 years. These lifetimes remain unchanged, and the renewed lifetime of each project is not 60 years.
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An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after a(n) ______ audit.
An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after an indepenfent audit.
What is independent audit?
An independent audit can be described as the examination of the financial records, as well as the accounts, business transactions, accounting practices, as well as the internal controls of a charitable nonprofit by an "independent" auditor.
It should be noted that the evaluation and unbiased opinion of the accuracy of a firm's financial statements is oner od the thing that can be associated to the indepenfent audit.
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What kind of services do banks offer their customers?
The services most often provided include a variety of checking accounts, saving accounts, certificates of deposit, and loans, including car loans and home mortgages. Additional services may include safe deposit boxes and investment-related services.
Explanation:
ABC Company sold goods to XYZ traders on May 1, 2019. ABC company agreed to accept a Kshs.1,400,000 for 6 month, 12% note in payment for the goods. Interest is payable at maturity. Required: Prepare journal entries to record the above transactions
Answer: If you have ever taken out a payday loan, you may have experienced a situation where your living expenses temporarily exceeded your assets. You need enough money to cover your expenses until you get your next paycheck. Once you receive that paycheck, you can repay the lender the amount you borrowed, plus a little extra for the lender’s assistance.
There is an ebb and flow to business that can sometimes produce this same situation, where business expenses temporarily exceed revenues. Even if a company finds itself in this situation, bills still need to be paid. The company may consider a short-term note payable to cover the difference.
A short-term note payable is a debt created and due within a company’s operating period (less than a year). Some key characteristics of this written promise to pay (see (Figure)) include an established date for repayment, a specific payable amount, interest terms, and the possibility of debt resale to another party. A short-term note is classified as a current liability because it is wholly honored within a company’s operating period. This payable account would appear on the balance sheet under Current Liabilities.
Short-Term Promissory Note. A promissory note includes terms of repayment, such as the date and interest rate.
Explanation:
gerald received a one-third capital and profit (loss) interest in xyz limited partnership (lp). in exchange for this interest, gerald contributed a building with an fmv of $23,000. his adjusted basis in the building was $11,500. in addition, the building was encumbered with a $6,900 nonrecourse mortgage that xyz lp assumed at the time the property was contributed. what is gerald's outside basis immediately after his contribution?
Gerald's outside basis immediately after his contribution to XYZ Limited Partnership is $17,100.
To calculate Gerald's outside basis, we need to consider the fair market value (FMV) of the building he contributed, his adjusted basis in the building, and any liabilities assumed by the partnership. Gerald contributed a building with an FMV of $23,000 and an adjusted basis of $11,500. The FMV represents the value of the building at the time of contribution, and the adjusted basis is the original cost of the building adjusted for any depreciation or other adjustments.
In addition, the building was encumbered with a nonrecourse mortgage of $6,900, which was assumed by XYZ LP. A nonrecourse mortgage is a type of loan secured by the property itself, where the borrower (Gerald) is not personally liable for repayment. To determine Gerald's outside basis, we add the FMV of the building ($23,000) to his adjusted basis ($11,500), and then subtract the amount of the nonrecourse mortgage assumed by XYZ LP ($6,900).
Outside Basis = FMV of contributed property + Adjusted basis - Assumed nonrecourse mortgage
Outside Basis = $23,000 + $11,500 - $6,900
Outside Basis = $34,500 - $6,900
Outside Basis = $17,100
Therefore, Gerald's outside basis immediately after his contribution to XYZ Limited Partnership is $17,100.
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delivering products to retail stores is considered the portion of the supply chain. question content area bottom part 1 a. just-in-time b. vertical c. upstream d. horizontal e. downstream
Delivering products to retail stores is considered the downstream portion of the supply chain.
The supply chain encompasses various stages involved in the production, distribution, and delivery of goods or services. It consists of both upstream and downstream activities. Upstream activities involve processes like sourcing raw materials, manufacturing, and assembling products. Downstream activities, on the other hand, focus on the distribution and delivery of finished products to the end consumers.
In the context of the given question, delivering products to retail stores falls under the downstream portion of the supply chain. This is because it involves the movement of products from the manufacturing or distribution centers to the retail stores, where they are made available for purchase by the customers. Downstream activities also include activities such as warehousing, order fulfillment, transportation, and retailing.
Understanding the distinction between upstream and downstream activities in the supply chain is crucial for effectively managing and optimizing the flow of goods, ensuring timely delivery, and meeting customer demand. Each stage of the supply chain plays a vital role in ensuring the efficient and effective movement of products from production to consumption.
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If a salesperson sells 34 pairs of jeans, 126 t-shirts, and 40 jackets, what fraction of the total number of items sold do the jackets represent? Reduce the fraction.
Answer:
1/5
Explanation:
34 + 126 + 40 = 200
40 jackets so 40/200
40/200 = 1/5 or one fifth
According to the Small Business Administration, the percentage of businesses that
survive the first five years is about
Answer:
50%
Explanation:
In year 1, diamond used the percentage of accounts receivable method to estimate uncollectible accounts. Based on the company's records, they determined that 10 percent of the gross accounts receivable balance will be uncollectible. Calculate the following for year 1 (enter the appropriate amounts in the associated cells): 2. In year 2, diamond switched to the aging of receivables method to estimate uncollectible accounts. Based on the aging schedule, calculate the following for year 2 (enter the appropriate amounts in the associated cells):]
Year 1
Estimated Uncollectible Accounts: 10% of gross accounts receivable balance
What is balance?Balance is a state of equilibrium in which the forces or influences that act upon an object, system, or entity are all in perfect harmony. Balance is important in both physical and mental health, as maintaining a balance between physical and mental activities can help improve overall wellbeing. Balance is also important in maintaining relationships, as making sure both parties are getting their needs met can help keep a relationship healthy. Balance is also an important part of decision-making, as finding a balance between taking risks and being careful can help make decisions that are most beneficial. Overall, balance is an essential part of life, as it helps us find harmony in the different aspects of our lives.
Estimated Uncollectible Accounts: $10,000
Year 2
Estimated Uncollectible Accounts:
0-30 Days: 5% of gross accounts receivable balance
31-60 Days: 10% of gross accounts receivable balance
61+ Days: 20% of gross accounts receivable balance
Estimated Uncollectible Accounts: $2,500
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